Buy Suzlon, Sterling & Wilson

Suzlon Soars 297% in 1 Year: Buy Now?

Hakri Lokapriya, CIO and MD at TCG AMC, mentioned on Monday that the renewable energy sector is likely to perform well in the near future. He specifically highlighted Suzlon Energy Ltd and Sterling and Wilson Renewable Energy Ltd as promising stocks within this sector.

Lokapriya noted that both Suzlon and Sterling and Wilson have been performing well and are expected to continue this trend due to the high volume of orders they anticipate.

Sterling and Wilson operates mainly as an EPC (Engineering, Procurement, and Construction) company focused on solar projects, while Suzlon specializes in providing turbines and blades.

This positive outlook is bolstered by the Indian government’s consistent efforts to promote green energy. Recently, the Union Cabinet approved a Viability Gap Funding (VGF) scheme for offshore wind energy projects, with a total allocation of Rs 7,453 crore.

This includes Rs 6,853 crore for the installation and commissioning of 1 GW of offshore wind projects (500 MW each off the coasts of Gujarat and Tamil Nadu) and Rs 600 crore for upgrading two ports to support logistics for these projects.

 

In terms of share price movement, Suzlon Energy surged 5 percent, reaching a new one-year high of Rs 55.69. This increase has resulted in a remarkable 296.94 percent rise over the past year, classifying it as a multibagger stock.

Conversely, shares of Sterling and Wilson Renewable Energy (SW Solar) experienced a slight decline, trading 0.48 percent lower at Rs 744.40. Despite this, SW Solar has achieved a substantial 152.38 percent gain in the past year, also making it a multibagger.

Both Suzlon Energy and SW Solar have been placed under the long-term ASM (Additional Surveillance Measure) framework by the BSE and NSE. Stocks are put under the ASM framework to alert investors about high volatility in their share prices.

Meanwhile, the Indian equity benchmarks were down, primarily due to declines in the banking, financial, and metal sectors. The broader markets, including small- and mid-cap shares, also experienced reductions today.

 

Out of the 16 sector gauges compiled by the NSE, 14 were trading in the red. The Nifty Bank, Nifty Financial Services, and Nifty Metal sub-indexes were the worst performers, dropping by 0.86 percent, 0.58 percent, and 1.12 percent, respectively.

In contrast, the Nifty FMCG and Nifty Consumer Durables indices saw gains of 0.39 percent and 0.24 percent, respectively. The overall market breadth was slightly negative on the BSE, with 1,656 shares declining and 1,655 advancing.

In the previous session, foreign portfolio investors (FPIs) sold Indian shares worth Rs 1,790.19 crore on a net basis, while domestic institutional investors (DIIs) purchased shares amounting to Rs 1,237.21 crore.